Introduction: According to a web document published online by Yahoo!Finance, Halliburton was founded in 1919. Halliburton provides products and services for national and independent oil and gas companies. More specifically, Halliburton Company provides products and services to the energy industry for the exploration, development, and production of oil and gas properties. The company operates in two segments, Completion and Production, and Drilling and Evaluation (2008).
According to the company's Form 10-K annual report filed with the U.S. Securities and Exchange Commission, one issue involving social responsibility that affects Halliburton involves the numerous environmental, Halliburton has subsidiaries that have been named as potentially responsible parties along with other third parties for nine federal and state superfund sites for which it has established a liability. Despite attempts to resolve these superfund matters, the relevant regulatory agency may at any time bring suit against Halliburton for amounts far in excess of the amount accrued. In each case, Halliburton does not believe it has any material liability. As of December 31, 2007, the nine sites accounted for approximately $10 million of the company's total $72 million liability. Management has taken steps to address this problem. Halliburton is aggressive pursuing defenses against these allegations. Part of its contingency planning involves establishing specific accruals in the event that it is found guilty of damaging the environment.
Another ethical issue involves Halliburton's alleged violation of the Foreign Corrupt Practices Act. The U.S. SEC is conducting a formal investigation into whether improper payments were made to government officials in Nigeria through the use of agents or subcontractors in connection with the construction and subsequent expansion of a multi-billion dollar natural gas liquefaction complex and related faciliti...